Seaton & Husk, LP is a transportation law firm specializing in regulatory compliance, cargo claims, freight charge collection, commercial litigation and related bankruptcy matters. Using a network of attorneys specializing in transportation law, Seaton & Husk manages and oversees litigation throughout the continental United States and Canada for its clients.

Tuesday, May 11, 2010

Please see the link below to view the CCPAC 2010 Special Spring Conference Edition newsletter which includes Henry E. Seaton, Esq.'s article "FMCSA Sends Elimination Of Cargo Filing Rule To President For Okay" on page 1.

A key House Democrat called for an investigation into motor carrier leasing practices in the harbor trucking industry to root out alleged abuses of drayage owner-operators.

Rep. Peter DeFazio, D-Ore., called for an investigation after allegations that some drayage motor carriers were imposing leases on owner-operators that in effect rendered them employees or failing to pass on equipment subsidies to owner-operators.

“We’ve seen an explosion in scam lease purchase agreements,” Joe Rajkovacz, director of regulatory affairs for the Owner-Operator Independent Drivers Association, said at a hearing on the clean truck programs at the ports of Los Angeles and Long Beach.

Many drayage carriers “give lip service” to federal regulations requiring written contracts with owner-operators specifying compensation, insurance requirements and any charges the company may assess, he said. “It is sharecropping or involuntary servitude.”

“We need to look further into this, to look at whether these leases are sham leases or not,” said DeFazio, chairman of the House Subcommittee on Highways and Transit, which held the May 5 hearing into the impact of the Los Angeles and Long Beach plans.

DeFazio questioned whether carriers that received subsidies from the Port of Los Angeles to buy clean trucks passed those subsidies on to owner-operators leasing the equipment.

“Is the owner-operator getting a discounted price for the clean truck?” he asked John Holmes, deputy executive director of the Port of Los Angeles. “Have you required they discount the price if they are using owner-operators?”

“The short answer is no, sir,” Holmes said, explaining that the port provides truck subsidies only to carrier and “we would like to think” they pass it through to drivers.

“Like to think?” said DeFazio. “I hope you’re going to hang around for subsequent testimony because I think that’s a kind of Pollyannish view of the world here.”

He called for a joint investigation into truck leasing by the House Transportation and Infrastructure Committee and the House Committee on Education and Labor.

Complaining of “disturbing and contradictory testimony,” DeFazio said, “We may be using our subpoena power to better understand these leases if we can’t get cooperation.”

OOIDA’s Rajkovacz said what owner-operators need is better enforcement of existing federal regulations. “For them to be a vibrant part of the marketplace, federal regulations to protect them from unscrupulous practices by motor carriers need to be enforced.”

Monday, May 3, 2010

The Carmack Amendment vs Contract Law (4:18)
Henry E. Seaton, Esq. / Big Truck TV
The Carmack Amendment was put in place to bring order to cargo claims. It stated that the carrier was liable to the goods, but the carrier also had the right to mitigate those losses as much as possible. But that was 100 years ago. Since then, many shippers have used contracts to undermine the spirit of the Carmack Amendment. Henry Seaton discusses what he calls the Reject it, Crush it, Dump it approach many shippers take and what carriers can - and should - do about it.

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About Us

Seaton & Husk, LP is a transportation law firm specializing in regulatory compliance, cargo claims, freight charge collection, commercial litigation and related bankruptcy matters. Using a network of attorneys specializing in transportation law, Seaton & Husk manages and oversees litigation throughout the continental United States and Canada for its clients.

Jeffrey E. Cox, Esq., admitted to Virginia Bar (2009); 2010 District of Columbia; 2010 Maryland. Education: American University, Washington, D.C. (B.A. Political Science and History 2003); George Mason University School of Law (J.D. 2008).

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Disclaimer

Disclaimer: The purpose of this material is to provide basic information about transportation law only, and this material does not constitute legal advice. The information in the material does not replace actual legal advice of an attorney. You should consult an attorney for legal advice if you have transportation law problems or questions.